I am in the process of evaluating my first deal on a multi-family investment property that I will not live in. There are two completely remodeled/finished units on the second and third floors that are currently occupied by tenants. The first floor used to be a bar and is currently completely gutted. The idea is to put either two residential units or one residential and one commercial unit on the first floor. Instead of using hard money for the whole deal, I am trying to finance just the purchase price with a conventional loan and using a HELOC on my primary residence to finance the first floor renovations to avoid the high interest rates with private money. I would then refinance with cash out once the renovations are complete to pay off the HELOC.

I have a few inquiries out to local mortgage brokers to see if this would be possible given the state of the first floor, but I am just curious to hear others' thoughts/experiences.